Components of Net Periodic Benefit Cost

Pension Plan, Retirement Income Maintenance Plan (the "RIM Plan") and Post-retirement Plan

The Company maintains a single employer, tax-qualified defined benefit pension plan (the "Pension Plan") which covers full-time employees that satisfy the Pension Plan's eligibility requirements. The benefits are based on years of service and the employee's compensation during the last five years of employment. Effective October 1, 2018, employees hired by the Bank are not eligible to participate in the Pension Plan as the Pension Plan has been closed to new employees as of that date.

The Company also has a Retirement Income Maintenance Plan (the "RIM "Plan) which is a non-qualified defined benefit plan which provides benefits to all employees of the Company if their benefits under the Pension Plan are limited by Internal Revenue Code 415 and 401(a)(17).

In addition, the Company provides certain health care and life insurance benefits to eligible retired employees under a Post-retirement Plan. The Company accrues the cost of retiree health care and other benefits during the employees’ period of active service. Effective January 1, 2019, the Post-retirement Plan has been closed to new hires. The Company also provides life insurance benefits to eligible employees under an endorsement split-dollar life insurance program.

11. Components of Net Periodic Benefit Cost (continued)

Net periodic benefit (income) cost for Pension Plan, RIM Plan, Post-retirement Plan and split-dollar life insurance arrangement plan benefits for the three and nine months ended September 30, 2019 and 2018, includes the following components:



	For the Three Months Ended September 30,
	Pension Plan						RIM Plan				Post-retirement Plans
	2019			2018			2019		2018		2019		2018			Affected Line Item in the Consolidated Statements of Income
	(In thousands)

Service cost	$	1,746		$	1,780		$	53	$	61	$	172	$	93		Compensation and employee benefits
Interest cost	2,090			2,129			116		111		321		205			Other non-interest expense
Expected return on plan assets	(5,802		)	(4,815		)	—		—		—		—			Other non-interest expense
Amortization:
Prior service cost	—			—			—		—		14		(34		)	Other non-interest expense
Net loss	770			707			61		103		99		69			Other non-interest expense
Net periodic (income) benefit cost	$	(1,196	)	$	(199	)	$	230	$	275	$	606	$	333



	For the Nine Months Ended September 30,
	Pension Plan						RIM Plan				Post-retirement Plans
	2019			2018			2019		2018		2019		2018
	(In thousands)

Service cost	$	4,748		$	5,340		$	159	$	183	$	516	$	279		Compensation and employee benefits
Interest cost	6,478			6,387			348		333		963		615			Other non-interest expense
Expected return on plan assets	(15,256		)	(14,445		)	—		—		—		—			Other non-interest expense
Amortization:
Prior service cost	—			—			—		—		42		(102		)	Other non-interest expense
Net loss	2,300			2,121			183		309		297		207			Other non-interest expense
Net periodic (income) benefit cost	$	(1,730	)	$	(597	)	$	690	$	825	$	1,818	$	999

Effective January 1, 2019, the Company implemented ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. Under this ASU, the FASB requires employers to report the service cost component in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the consolidated statements of income separately from the service cost component. The table above details the affected line items within the consolidated statements of income related to the net periodic benefits costs for the periods noted. This ASU is also required to be applied retrospectively to all periods presented.

11. Components of Net Periodic Benefit Cost (continued)

The following table summarizes the impact of retrospective application to the consolidated statements of income for the three and nine months ended September 30, 2018:



	For the Three Months Ended		For the Nine Months Ended
	September 30, 2018		September 30, 2018
	(In thousands)
Compensation and employee benefits:
As previously reported	$	16,654	$	49,929
As reported under new guidance	18,179		54,503

Other non-interest expense:
As previously reported	$	3,304	$	9,599
As reported under new guidance	1,779		5,024

During the nine months ended September 30, 2019, the Bank contributed $35.0 million which increased the funded status of the Plan to meet the approximate maximum tax deductible contribution limit. The net periodic cost (income) for pension benefits and other post-retirement benefits for the three and nine months ended September 30, 2019 were calculated using the the most recent available benefit valuations.